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Tesla and Panasonic join forces to build US battery-plant

Tesla Motors has teamed up with Panasonic to build a battery-plant in the US. The idea is that the giant factory with 6,500 people will produce cells, modules and packs for Tesla cars and for the stationary energy storage market.

Panasonic will manufacture and supply the lithium-ion battery cells and invest in equipment while Tesla manages the land and buildings.

“The Gigafactory represents a fundamental change in the way large-scale battery production can be realized,” said Tesla Chief Technical Officer and co-founder JB Straubel.

It has not been confirmed where in the US the factory will be based.

As the electric vehicle market becomes more competitive, it is important for Tesla to have these type of partnerships as it will reduce cost while increasing quality and endurance of the batteries.

Tesla (TSLA) is going to release their quarterly earnings after market close today, which we will report on.